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Which of the Following Statements Concerning Payback Analysis Is True

Question 76

Multiple Choice

Which of the following statements concerning payback analysis is true?


A) An investment with a shorter payback is preferable to an investment with a longer payback.
B) The payback method ignores the time value of money concept.
C) The payback method and the unadjusted rate of return are different approaches that will not consistently lead to the same conclusion.
D) All of these answers are correct.

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